dollar

Stablecoin rankings are overwhelmingly dollar-based. USDT, USDC and other USD tokens dominate supply and usage, with dollars representing around 99% of a $300+ billion market. #euro stablecoins, at roughly $600 million, appear insignificant, especially at a time when Europe’s public debate focuses more on CBDC than on privately issued euro stablecoins.

However, today’s numbers can be misleading. #Stablecoins already settle real economic activity at scale. In 2024, they processed roughly $28 trillion, surpassing Visa and Mastercard combined. This signals the emergence of a parallel settlement rail that already functions at a systemic scale.

The problem for #Europe is that almost all of this activity settles in dollars rather than euros. Euro stablecoins aren’t small because the euro leg is unnecessary. They’re small because Europe hasn’t connected its currency to infrastructure that is already operating, but the shift to tokenized finance is irreversible.

Traditional payment rails still rely on cut-off times and reconciliation cycles measured in days. Around this ageing stack, a new one is forming in which assets and payments settle directly on-chain. Stablecoins are becoming an essential core infrastructure of financial services. Standard Chartered projects $30 trillion in tokenized real-world assets by 2034; Citigroup predicts up to $5 trillion in tokenized digital securities by 2030, with tokenized assets potentially reaching 10% of global GDP. None of this works without on-chain fiat, the world’s second-largest currency is too important not to play a part. The eurozone is a $16 trillion economy and the world’s second-largest currency bloc.

Suppose we accept two simple facts: 1. the euro is not going to disappear, and 2. Europe is not going to dollarize, so then a globally significant euro stablecoin is a logical outcome. The underlying euro economy is enormous. In 2023, the Eurosystem’s T2 platform processed roughly €2.2 trillion per day. According to the Bank for International Settlements (BIS), average global FX turnover reached $9.6 trillion per day in April 2025, with the USD on one side of about 89% of all trades; the euro ranked as the second most-active currency globally. If even 0.1% of euro flows move on-chain, that implies €2.2 billion settling daily, or more than €800 billion per year. This is more than enough to support a euro stablecoin ecosystem worth hundreds of billions.

For policymakers and investors, the real question is not whether euro stablecoins win outright, but what mix of on-chain euro options best balances innovation and financial stability.

#dollar stablecoins had a decade head start. Europe is now catching up. The next major expansion in stablecoins is not another USD token but rather a credible, scalable euro stablecoin, built for the size of Europe’s economy and privately issued.

Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt

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$USDT $USDC $EUR

The International Monetary Fund (#IMF ) has warned that the rapid and centralized growth of the dollar-based stablecoin sector, which has now exceeded $300 billion and is linked to over 97% of U.S. dollars, poses serious risks to global financial stability. The IMF's primary concern is that the widespread adoption of these dollar-based stablecoins could undermine the financial sovereignty of weak economies, weaken internal liquidity and interest rate policies, and exacerbate currency substitution and capital flow volatility in high-inflation countries. The organization also noted that the fragmentation of regulations across the U.S., Europe, and Asia is complicating global oversight, allowing issuers to exploit regulatory gaps. To address these risks, the IMF has called for international coordination and robust policies to mitigate threats to global financial stability by adjusting reserve requirements and preventing shadow banking risks.#dollar

🔎 What do recent analyses say about the weakness of the dollar?

A key player warning about potential problems for the dollar is the investment bank Standard Chartered, which in May 2025 issued a forecast stating that the dollar "could face a significant drop in 2026." Among its reasons, it points out the increase in U.S. public debt, current account deficits, and a possible deterioration in foreign investors' confidence towards dollar-denominated assets.

According to Willy Woo, Bitcoin historically reaches its major tops before we see retracements in global M2 liquidity.
Many assume that falling Fed rates automatically translate to more liquidity and expanded money supply — implying global M2 should move higher.
But there’s an important nuance:
When global investors shift into U.S. dollars instead of risk assets — the classic flight to safety — the dollar strengthens.
And when the dollar appreciates, global M2 measured in USD can decline, even in periods of monetary easing or stimulus.
This dynamic helps explain why Bitcoin sometimes moves ahead of macro indicators.
BTC can price in shifts long before they show up in global liquidity data.